Immigration and Social Security Co-ordination (EU Withdrawal) Bill

Baroness Sherlock Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Wednesday 22nd July 2020 Lords Chamber

[Baroness Sherlock (Lab) [V]]

My Lords, I will concentrate on those parts of the Bill that make provision for social security co-ordination, particularly Clause 5 and Schedules 2 and 3.

We are currently part of the EU system, which is based on four principles: the single state principle that, at any one time, EU citizens are covered by the social security system of just one country and have to pay contributions in only one country; equal treatment, whereby if they are in another member state, they have the same rights as their nationals; aggregation, meaning that periods of insurance, employment or residence in other member states count when determining eligibility for benefits; and exportability, meaning that they can receive benefits from one member state even when they live in another. There is a well-established system of administrative co-operation behind this and these provisions will still apply after the transition period for those within the scope of the withdrawal agreement. The UK has also done a deal with Ireland that broadly replicates the current provisions.

However, the position of other people moving between the UK and the EU after the transition period will depend on whether a future relationship agreement covering social security co-ordination is secured. The augurs are not positive. Last month, a Commons Library brief noted:

“The EU’s Draft Protocol on Social Security Coordination and the UK’s Draft Social Security Coordination Agreement differ significantly in terms of both the matters covered and the persons covered.”


Oh dear.

There is some common ground on state pensions, where both sides want aggregation and for pensions to be able to be exported and uprated annually, but not on disability benefits or healthcare for pensioners living abroad. And there are no co-ordination provisions for benefits other than pensions.

Can the Minister tell us whether there is an agreement in the offing? If not, am I right that this could mean that, without an agreement, workers moving to or posted to an EU country could have to pay national insurance contributions in both countries; people moving between the UK and the EU could find that their contributions paid overseas are ignored if, say, they later fall sick and need to claim benefits; and that there will be no clear rules about which country is responsible for paying someone’s benefits and no mechanism for resolving disputes?

There is deep uncertainty about the future position, but the right response is not a Bill containing Henry VIII powers so broad that they will allow Ministers pretty much to rewrite the social security co-ordination rules at will. Social security co-ordination is an essential prerequisite for labour mobility. But it is also about fairness. These issues affect a lot of people and Parliament deserves more clarity, control and accountability than this Bill currently affords.